China’s Private Enterprises In Africa: Development, Influence And Future Trend

Economic globalization promote world trade and investment developing in a deeper level. Since China’s reform and opening up in 1978, the Chinese government implement the "going out" strategy, actively encourage domestic qualified enterprises go abroad investing and setting up factories. With its own advantages, State-owned enterprise became the main force of Chinese enterprises overseas investment, after a long period of that time. In recent years, private enterprises, going with accumulation of overseas investment experience, is being a new force of Chinese enterprises in investing Africa.African Continent riches in natural resources, and has vast unlimited potential market, attracting the attention of investors around the world. Sino-Africa relations have a long history. After Sino-Africa Cooperation Forum was established in 2000, Sino-Africa relations promote to a new level. The close and frequent interaction in economy and trade between China and African countries created a good condition for Chinese enterprises go into Africa. From then on, China’s private enterprises begin to spring up all over the African continent.Based on the researching of China’s private enterprises into Africa, the essay is divided into five department content. The first part is introduction which mainly introduces the research background and significance, research review and paper’s framework. The second section takes a brief review on the history of Chinese private enterprises into Africa which divided into infancy stage, initial stage, and growing-up stage. The third part analyzes the influencing factors of China’s private enterprises into Africa, including Africa currently favorable political and economic environment, Chinese positive policies, and the private enterprises’ own factors. The fourth part makes a prediction for the private enterprise’s future in Africa. At the last section, the essay try to make recommendations and policy options to promote the development of Chinese private enterprises in Africa better.The study found that, the favorable factors like demographic dividend, urbanization and the rise of the middle class brings enormous consumption potential which become an important driving force to promote Chinese private enterprises into Africa. In the future, China’s private enterprises should further explore the infrastructure construction market, accelerate the textile industry, manufacturing and other labor-intensive industries transferring to Africa, and strengthen the capacity cooperation to promote Africa’s industrialization and urbanization.